Reserve Cotton Is Large And Quality Is Bad. Market Demand Is Weak.

In July 8th, warehousing units issued a statement saying that China

The auction will start in July 10th, but traders warned that the demand for performance was bad due to the abundant stock market and the high price of cotton reserves.

Zhengzhou September cotton contract touched down limit on Wednesday, China

Collapse leads to commodities

The whole encounter was sold.

Traders say the Shanghai Composite Index has fallen more than 30% since mid June, and investors have withdrawn from the commodity market.

China's stock market suffered another setback on Wednesday as investors disapproved of a series of market support measures by Chinese regulators.

A spokesman who did not want to be named said: "this will help China cotton more than the target price, which will make the sale of cotton reserves meet with challenges."

The national development and Reform Commission said in June that the national reserve cotton will pass through the whole country in 7 and August this year.

The trading market will arrange the reserve cotton rotation in the form of open bidding. The number of rounds will be temporarily suspended by 1 million tons, and sales will cease after the new year begins in September.

The specific quantity and price arrangement are: 330 thousand tons of domestic cotton in 2011, bid price base (3128B, the same below), 13200 yuan / ton, 470 thousand tons of domestic cotton in 2012, 14200 yuan / ton bid price, 200 thousand tons of imported cotton in 2012, 15500 yuan / ton bid price.

In a statement issued on Tuesday, the China cotton reserve management company said that for a very bad reserve cotton, the price would be reduced by 2400 yuan per ton.

However, most of the reserve cotton prices are still higher than domestic cotton contracts, and Zheng cotton contract fell to 12205 yuan per ton on Wednesday.

China's cotton reserves are about 11 million tons, about half of global stocks.